Asked by: Stuart Anderson (Conservative - Wolverhampton South West)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to help ensure that the steel industry has a sustainable future.
Answered by Lee Rowley - Minister of State (Minister for Housing)
The Government recognises the vital role the steel sector plays in our economy and has supported the steel sector extensively, including providing over £600 million since 2013 to help with electricity costs. In April the Government announced the extension of this scheme for a further three years; more than doubling the previous budget and significantly increasing the level of relief.
The Government will continue to work with the sector to support its transition to a sustainable future. My rt. hon. Friend the Secretary of State and I engage regularly with the sector, including through the Steel Council.
Asked by: Lord Wigley (Plaid Cymru - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government what proportion of the steel used in the UK manufacturing industry was produced (1) in the UK, (2) in the EU, and (3) in the rest of the world, in the last year for which figures are available.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
We are unable to identify the country of origin for steel used in the UK manufacturing industry specifically.
In 2020, the UK consumed 9.0mt of finished steel (World Steel Association report, copy attached). According to the International Steel Statistics Bureau, 50% was sourced from UK producers. The remaining 50% was imported from foreign producers. Based on import data, we estimate the following proportions for the regions below:
According to the Future Capacities and Capabilities of the UK Steel Industry (attached), c.20% of the demand for finished steel products in 2015 was for manufacturing (defined as automotive, machinery & engineering, and packaging).
Asked by: Ruth Jones (Labour - Newport West)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the impact of rising electricity prices on the sustainability of UK steelmakers.
Answered by Lee Rowley - Minister of State (Minister for Housing)
We recognise the effect rising energy prices are having on businesses of all sizes and we are regularly engaging with them to discuss impacts and mitigations.
Since 2013, we have provided more than £2 billion in relief to help energy intensive industries with the costs of electricity, with over £600 million for steel. In addition, we have various funds in place to support businesses with high energy use to cut their bills, including the £315 million Industrial Energy Transformation Fund.
Asked by: Jacob Young (Conservative - Redcar)
Question to the Wales Office:
To ask the Secretary of State for Wales, what recent assessment the Government has made of the contribution of the steel industry in Wales to the UK economy.
Answered by Simon Hart - Parliamentary Secretary to the Treasury (Chief Whip)
The UK Government recognises the importance of the steel industry in Wales and the UK. This House only needs to look at the £30 million loan we secured for Celsa to see our commitment to the sector. Our response during the pandemic helped secure more than 1,000 steel jobs.
Asked by: Stephen Kinnock (Labour - Aberavon)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what plans he has to bring forward a green steel deal.
Answered by Lee Rowley - Minister of State (Minister for Housing)
As my Rt. Hon. Friend the Secretary of State stated in his evidence to the Business, Energy and Industrial Strategy Select Committee on 20 July 2021, the Government is keen to have a more sustainable, long-term approach to the sector. The Department is continuing to work with the sector through the Steel Council, and additional regular dialogue, to understand the options to achieve decarbonisation.
Asked by: Angus Brendan MacNeil (Independent - Na h-Eileanan an Iar)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of progress in Europe on trialling hydrogen-based steelmaking; and what steps he plans to take to ensure that the UK keeps up with international developments in clean steel production.
Answered by Nadhim Zahawi
The UK is monitoring international progress on low carbon steel making trials, using hydrogen and other technologies, and is actively engaged in international initiatives to support industrial decarbonisation innovation, including the Mission Innovation platform and the Leadership Group for Industry Transition.
Decarbonising UK industry is a core part of the Government’s ambitious plan for the green industrial revolution. The Industrial Decarbonisation Strategy, published on 17 March, commits government to work with the Steel Council to consider the implications of the recommendation of the Climate Change Committee to ‘set targets for ore-based steelmaking to reach near-zero emissions by 2035’. The Steel Council offers the forum for government, industry and trade unions to work in partnership on the shared objective of creating an achievable, long-term plan to support the sector’s transition to a competitive, sustainable and low carbon future. Hydrogen-based steelmaking, Carbon Capture, Utilisation and Storage (CCUS), and electrification are some of the technological approaches being examined as part of this process.
The UK steel sector will be given the opportunity to bid into industrial fuel switching innovation programmes under the £1 billion Net Zero Innovation Portfolio (NZIP), which is intended to promote switching away from more carbon-intensive fuel sources. The Government has also announced a £250 million Clean Steel Fund to support the UK steel sector to transition to lower carbon iron and steel production, through investment in new technologies and processes.
Asked by: Angus Brendan MacNeil (Independent - Na h-Eileanan an Iar)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of potential additional policy measures needed to support future clean steel production in the UK.
Answered by Nadhim Zahawi
The UK is monitoring international progress on low carbon steel making trials, using hydrogen and other technologies, and is actively engaged in international initiatives to support industrial decarbonisation innovation, including the Mission Innovation platform and the Leadership Group for Industry Transition.
Decarbonising UK industry is a core part of the Government’s ambitious plan for the green industrial revolution. The Industrial Decarbonisation Strategy, published on 17 March, commits government to work with the Steel Council to consider the implications of the recommendation of the Climate Change Committee to ‘set targets for ore-based steelmaking to reach near-zero emissions by 2035’. The Steel Council offers the forum for government, industry and trade unions to work in partnership on the shared objective of creating an achievable, long-term plan to support the sector’s transition to a competitive, sustainable and low carbon future. Hydrogen-based steelmaking, Carbon Capture, Utilisation and Storage (CCUS), and electrification are some of the technological approaches being examined as part of this process.
The UK steel sector will be given the opportunity to bid into industrial fuel switching innovation programmes under the £1 billion Net Zero Innovation Portfolio (NZIP), which is intended to promote switching away from more carbon-intensive fuel sources. The Government has also announced a £250 million Clean Steel Fund to support the UK steel sector to transition to lower carbon iron and steel production, through investment in new technologies and processes.
Asked by: Angus Brendan MacNeil (Independent - Na h-Eileanan an Iar)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to trials, pilots and full-scale projects underway in countries including France, Austria, Germany, Netherlands, Spain, Sweden, Italy on using hydrogen to produce primary steel, what steps she is taking to ensure steel production in the UK keeps pace with international competitors on developing and using clean steel production technology.
Answered by Nadhim Zahawi
The UK is monitoring international progress on low carbon steel making trials, using hydrogen and other technologies, and is actively engaged in international initiatives to support industrial decarbonisation innovation, including the Mission Innovation platform and the Leadership Group for Industry Transition.
Decarbonising UK industry is a core part of the Government’s ambitious plan for the green industrial revolution. The Industrial Decarbonisation Strategy, published on 17 March, commits government to work with the Steel Council to consider the implications of the recommendation of the Climate Change Committee to ‘set targets for ore-based steelmaking to reach near-zero emissions by 2035’. The Steel Council is a forum for Government, industry and trade unions to work together on the shared objective of creating a competitive, sustainable and low carbon future for the sector. Hydrogen-based steelmaking is one of the technological approaches being examined as part of this process.
The UK steel sector will be given the opportunity to bid into industrial fuel switching innovation programmes under the £1 billion Net Zero Innovation Portfolio (NZIP), which is intended to promote switching away from more carbon-intensive fuel sources. The Government has also announced a £250 million Clean Steel Fund to support the UK steel sector to transition to lower carbon iron and steel production, through investment in new technologies and processes.
Asked by: Christian Wakeford (Labour - Bury South)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of the opportunities to create new, highly skilled jobs through the decarbonisation of the UK steel industry.
Answered by Nadhim Zahawi
Levelling up and ensuring high-quality employment across every region of the UK is a key element in the Government’s Plan for Growth. It is estimated that the UK low-carbon economy could grow more than four times faster than the rest of the economy between 2015 and 2030 and support up to 2 million jobs. The Government will ensure that the benefits of our growing low-carbon economy are shared fairly in every region.
The Steel Council offers the forum for government, industry and trade unions to work in partnership on the shared objective of creating an achievable, long-term plan to support the sector’s transition to a competitive, sustainable and low carbon future. The UK steel sector will be given the opportunity to bid into industrial fuel switching innovation programmes under the £1bn NZIP portfolio, which is intended to promote switching away from more carbon-intensive fuel sources. The Government has also announced a £250 million Clean Steel Fund to support the UK steel sector to transition to lower carbon iron and steel production, through investment in new technologies and processes.
Asked by: Christian Wakeford (Labour - Bury South)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of the opportunities for hydrogen-based steelmaking projects to help level up the UK.
Answered by Nadhim Zahawi
The Industrial Decarbonisation Strategy, published on 17 March, commits to work with the newly constituted Steel Council to consider the implications of the recommendation of the Climate Change Committee to ‘set targets for ore-based steelmaking to reach near-zero emissions by 2035’.
Hydrogen-based steelmaking, CCUS (carbon capture, utilisation and storage),
and electrification are some of the technological approaches being examined as part of this process. The Steel Council offers the forum for government, industry and trade unions to work in partnership on the shared objective of creating an achievable, long-term plan to support the sector’s transition to a competitive, sustainable and low carbon future.
In order to support these efforts, the Government has announced a £250 million Clean Steel Fund to support the UK steel sector to transition to lower carbon iron and steel production, through investment in new technologies and processes. The decarbonisation of the steel sector and industry more widely will also be supported through the £1 billion CCUS Infrastructure Fund (CIF) and £240m Net-Zero Hydrogen Fund.